3 Reasons You Should Buy Apple Stock Ahead of a Major Product Launch
- - 3 Reasons You Should Buy Apple Stock Ahead of a Major Product Launch
Lydia KibetAugust 24, 2025 at 12:27 AM
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When it comes to the rise and fall of Apple stock, there are a number of catalysts investors look out for, and one of them is product launches. Apple consistently moves the market with their new releases, making product drops notable for consumers and investors alike.
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The tech giant’s annual product releases aren’t just tech events. They’re market-moving moments that not only trigger Apple’s stock price but also the entire industry. If you’re considering adding Apple shares to your portfolio, here are three reasons the experts say to buy ahead of major product launches.
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Quick Take: AAPL Current Performance
Generally, many analysts recommend buying Apple stock, citing the company’s strong fundamentals and potential for future growth, especially in AI and services. Though 2025 has been a mixed bag for Apple and its CEO, Tim Cook, here are a few key takeaways as to how the stock is currently performing as of Aug. 21, 2025, according to MarketWatch:
Stock price: $226.27
Market cap: $3.35 trillion
52-week high: $260.10
52-week low: $169.21
So, is Apple stock a buy ahead of major product launches? Here are the things experts say you should consider.
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Buy the Rumor, Sell the News
You’ve probably heard the phrase “buy the rumor, sell the news.” This means buying a stock in anticipation of a major event that could drive prices up and selling when the news goes public, often at a profit.
Apple is a great example of this phenomenon. Leading up to major product launches, speculation is high. Analysts release bold forecasts, and hedge fund managers start to increase their positions — all of this often skyrockets Apple’s stock price before the actual launch.
“Whenever there’s a product launch or some upcoming news, a big news catalyst that everyone knows about, you’ve got to buy significantly ahead of the news,” said David Capablanca, founder of The Friendly Bear University. “Because when the product comes out, the stock price is already baked in. Everyone already loaded up before the product launch, and then the launch itself becomes what they call a ‘sell the news’ event.”
History repeats itself. So, don’t wait until Apple launches its new products like the iPhone 17 or a new version of iPad Air to buy the stock. Buy the rumor and ride pre-launch momentum.
Rise in Valuation
Every time Apple is about to release a new product, its valuation goes up. Why? Investors and hedge fund managers jump in to buy the stock. As more people buy, Apple’s stock price goes up, and so does its valuation.
“If you are willing to hold the stock for a longer period, buying prior to a major product launch has proven successful in the past,” said John Foard, chief compliance officer and co-founder of Crown Advisors. “If you look at the history of the stock price over time, the typical scenario is a run-up in share price prior to the product launch, an underperformance or dip after the launch, and then an average of more than 10% in gains over the six months following the launch.”
Apple’s Brand Loyalty
Apple is more than a tech company. It has a brand loyalty that locks in customers like no other. For this reason, every major product launch leads to cross-product sales. A new iPhone drives demand for a new watch, AirPods or MacBook.
“Apple owns its customers. You buy the phone, then you pay for storage. Then you get the watch. Then the headphones. The lock-in is totally brutal,” said David Materazzi, CEO and founder of Galileo FX. “People don’t leave. They adapt to whatever Apple makes next. That’s the real launch, one that happens quietly every day, in the background, every time someone buys into the system.”
Caitlyn Moorhead contributed to the reporting for this article.
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